The Canadian dollar advanced versus its US peer and jumped to the highest since 2010 against the Japanese yen on robust employment growth and the falling unemployment rate in Canada. The currency fell against the euro.
Canada’s employment rose by 39,800 jobs in December from November. At the same time, the unemployment rate dropped 0.1 basis point to 7.1 percent. The positive data allowed economists to speculate that the Bank of Canada may raise borrowing costs in the second half of the current year.
The employment data from the United States, the biggest trading partner of Canada, was also somewhat supportive for the Canadian currency. US non-farm payrolls demonstrated growth by 155,000 in December — nothing stellar, but definitely not bad at all.
USD/CAD fell from 0.9875 to 0.9868 following the rally to 0.9921. CAD/JPY rallied from 88.26 to close at 89.22 and its intraday high of 89.61 was the highest price since June 2010. Meanwhile, EUR/CAD erased its drop from 1.2886 to 1.2843 (the lowest rate since December 13) and closed at 1.2907.
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